"Senate could kill auto bailout," read the headline in Politico.com on Thursday. Congressional Quarterly reported, "If opponents use all of the procedural options available to them, work on the bill could stretch through the weekend and into the week of Dec. 15."
"The whole scope of the government intervention is so novel that even the auto bill's critics are divided among themselves as to what is the best route," reported Politico.com.
Simply put, lawmakers want to impose strict restructuring terms on the automakers in return for aid or force them into bankruptcy.
The House cut the amount of money to be made available to automakers by $1 billion because the cost of guaranteeing the loans has gone up.
In the meantime, auto forecaster CSM is predicting that Chrysler won't survive the crisis intact. Michael Robinet, head of CSM's global vehicle forecasting, told the Automotive Press Association in Detroit on Wednesday that a "controlled wind-down of Chrysler is in everybody's interest." Owner Cerberus Capital Management may sell Chrysler's most valuable brands, including Jeep and the Dodge Ram. The rest of Chrysler's operations would likely be closed.
Inside Line says: Detroit's fate still hangs in the balance as lawmakers continue to wrangle. — Anita Lienert, Correspondent
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